value: 1.00 points SkyChefs, Inc., prepares in-flight meals for a number of majo
ID: 2540889 • Letter: V
Question
value: 1.00 points SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,000 of these meals using 960 direct labor-hours. The company paid these direct labor workers a total of $9,600 for this work, or $10.00 per hour According to the standard cost card for this meal, it should require 0.25 direct labor-hours at a cost of $9.75 per hour Required 1. According to the standards, what direct labor cost should have been incurred to prepare 4,000 meals? How much does this differ from the actual direct labor cost? (Round labor-hours per mel ad labor cost per hour to 2 decimal places.) Number of meals prepared Standard direct labor-hours per meal Total direct labor-hours allowed Standard direct labor cost per hour Total standard direct labor cost Actual cost incurred Total standard direct labor cost Total direct labor variance 2. Break down the difference computed in (1) above into a labor rate variance and a labor efficiency variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable and ""None" for no effect (i.e., zero variance).) Labor rate variance Labor efficiency varianceExplanation / Answer
1. According to standard, standard cost and actual cost and variance :
2. Labour rate variance = (9.75*960-9600) = 240 U
Labour efficiency variance = (4000*.25-960)9.75 = 390 F
Number of meals prepared 4000 Standard direct labour hour per meal 0.25 Total direct labour hour allowed 1000 Standard direct labour cost per hour 9.75 Total standard cost 9750 Actual cost incurred 9600 Total standard direct labour cost 9750 Total direct labour variance 150 FRelated Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.